On Faith Based Investing - So Long GE !

We have long viewed the fervent love of GE as something akin to belief in Santa Claus or the Big Foot.

This not our last post, nor shall it be our last in this Vangaurd of "widows and orphans" stocks.

Now that GE has slashed the dividend, it is back to 1993 prices. The fund managers and asset allocators have been chasing this one into the ground since the bursting of the tech/large cap growth bubble.

And we comment, we know of no buy and hold investor that has made any money in this stock since the late 1990s.

http://bloomberg.com/apps/news?pid=20601087&sid=a6kGa8cYzlbc&refer=home

Yet hope persists! Proving:

1) When every single bank and trust company in the U.S. and the majority of large cap mutual funds own a stock - there is no one left to push the price up.

2) Investors need to learn to think for themselves.

3) If you believe the ratings agencies and the AAA rating, you deserve to lose your money.

We have never owned this stock, as we view it as a black box that has continually managed earnings expectations. Addtionally, it has long been dependent on its financing and capital arms for profits.

Yet the faithful still bow their heads at the alter!